Flight Centre Travel Group has joined the Virgin Australia Group in predicted positive cash flow for the 2016/17 financial year.
The Group issued an early financial statement on ASX this week, in which it indicated that it’s on track to achieve an underlying profit before tax (PBT) between $325million and $330million for the 12 months to 30 June 2017.
The positive outlook comes as the company said its full year total transaction value will top $20 billion, exceeding the prior year’s $19.3billion result.
Managing Director, Graham Turner, attributed positive expectations to strong second half profit growth. He said second half results are likely to surpass the profit before tax on the first half, which was down seven percent due to widespread international airfare discounting.
“While we always aim to improve on the prior year result, our achievements during the second half reflect a solid recovery after a challenging first half, which saw a combination of internal and external factors affect results.”
Graham Turner, Flight Centre Travel Group Managing Director
He continued, saying that in order to turn around results during the second of the financial year, the Group focused on factors within its control such as generating strong sales volumes, enhancing productivity and making it easier for customers to interact and transact with the various brands.
“We have also continued to invest in key initiatives and strategies that will strengthen our core divisions – leisure travel, corporate travel and in-destination travel experiences- and help us deliver profitable growth over the long-term,” he said.
Flight Centre Travel Group expects the New Zealand business to contribute to a record full year profit, while the North American sector is on track for a record profit.
In Canada, the business has experience record year-on-year improvement and there’s expected to be another record profit in local currency in Europe, the Middle East and Africa.
Flight Centre Travel Group’s full year 2016/17 financial results will be available on 24 August 2017.